Advanced Micro Devices Inc (AMD) on Tuesday, June 13, provided new details about an artificial intelligence (AI) chip that will challenge Nvidia Corp.
California-based AMD He said The most advanced AI graphics processing unit (GPU), MI300X, will begin to appear in the third quarter and mass production will follow starting in the fourth quarter.
AMD’s announcement is the biggest challenge for Nvidia, which currently dominates the AI chip market with more than 80% market share. Graphics Processing Units (GPUs) are chips that companies like OpenAI use to build sophisticated AI software like ChatGPT. They have parallel processing capabilities and are optimized to handle large amounts of data simultaneously, making them well-suited for tasks that require high-speed and efficient graphical processing.
AMD announced that its latest MI300X chipset and CDNA architecture have been specifically developed to meet the requirements of large language models and advanced AI models. With a maximum memory capacity of 192GB, the MI300X allows to accommodate larger AI models compared to other chips such as Nvidia’s H100 chip which supports a maximum of 120GB of memory.
AMD announced Infinity Architecture, which bundles eight M1300X accelerators into a single system, mirroring similar systems from Nvidia and Google that integrate eight or more GPUs for AI applications.
During the presentation to investors and analysts in San Francisco, AMD CEO Lisa Su highlighted that AI represents the company’s “most important and strategically important long-term growth opportunity.”
“We are envisioning the growth of the AI accelerator (market) for the data center from about $30 billion this year, at a compound annual growth rate of more than 50%, to more than $150 billion in 2027,”
If developers and server manufacturers embrace AMD’s “accelerated” AI chips as alternatives to Nvidia’s products, it could open up a large untapped market for the chipmaker. AMD, which is best known for its traditional PC processors, will benefit from this potential shift in demand.
Related: An AI startup by ex-Meta and Google researchers has raised $113M in seed funding.
Although AMD hasn’t disclosed specific pricing details, the action could put downward pressure on Nvidia’s GPUs, including models like the H100, which can carry price tags of $30,000 or higher. Lower GPU prices can contribute to lower overall expenses associated with running resource-intensive generative AI applications.
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